Posted on 17 Dec 2021
Southeast Asian import markets for wire rod and rebar are quiet, Kallanish notes. While prices have fallen, regional importers are generally inactive because of weakness in regional demand.
Offers for 6.5mm diameter blast furnace low-carbon wire rod mostly from Indonesia are at $715-720/tonne Manila, down from last week’s $730/t cfr. The offers, for February/March shipment, are not attracting takers.
Buying interest is “almost non-existent” because of weak demand for finished products, a Manila trader says. He thinks some customers are also wary about the wide price gap between billet and wire rod. They think wire rod prices will have to come down. The above-mentioned Indonesian mill is offering 150mm 5sp billet at $625/t cfr Taiwan. Its offer for 150mm 3sp billet to China is also heard at the same level.
In Thailand, induction furnace small, 1-1.2t coil wire rod from India is offered at $695/t cif. A Thai trader says he has not received any inquiries for the offer.
Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $715/t cfr Manila, down $7.5 on-week.
Meanwhile, Vietnamese-origin theoretical-weight rebar for January shipment concluded last week at $690-695/t cfr Singapore. Vietnamese market sources heard that the booking was for 40,000 tonnes, but a Singapore trader heard it was for 30,000t. The initial rebar offer last week was at $710/t cfr Singapore.
Several traders are offering Vietnamese rebar in Singapore this week. This includes an offer for 10,000t on 14 December at $698/t cfr for shipment by early February. The Vietnamese mill is turning to the export market because of high rebar stocks amid slow domestic demand, a Vietnamese trader says. Another says the mill is afraid to further cut domestic prices, listed at around VND 15.8m/t ($689/t), as this could cause bearishness among domestic buyers.
Rebar from this Vietnamese mill is now the cheapest in Singapore, a Singapore trader says. Rebar demand is expected to weaken next month due to the winter season in China, and ahead of the Lunar New Year holiday, he adds. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $690-695/t cfr Singapore theoretical weight, down $17.5/t.
Source:Kallanish
